Many localities in areas across the country are considering or adopting ordinances that limit or prevent the ability of property owners to rent out properties on a short-term basis. The dynamics of this issue are complex. The infringement upon property rights is a common theme when local governments limit the use of property. Property ownership includes the right to gain income from property; whereas local governments are granted the legal authority to regulate land use within their jurisdiction by police powers and/or zoning regulations. The natural complexities of short-term rentals also create a division of positions among NAR’s membership.

Some of the other issues that arise for debate are: 

Housing Availability and Affordability: Critics argue that short-term rentals reduce the availability of long-term rental housing, driving up rents and property prices. This can exacerbate housing shortages, particularly in popular tourist destinations.

Community Impact: Opponents claim that short-term rentals disrupt community cohesion and increase noise and traffic in residential neighborhoods. They also raise concerns about the loss of a sense of community and the displacement of long-term residents.

Economic Considerations: Proponents of short-term rentals highlight the economic benefits, including increased tourism revenue and supplemental income for property owners. They argue that short-term rentals can help homeowners afford their properties and stimulate local economies.

Regulation and Enforcement: There is ongoing debate about the appropriate level of regulation for short-term rentals. Some advocate for strict regulations to mitigate negative impacts, while others argue for more lenient rules to encourage economic benefits. Effective enforcement of these regulations is also a challenge.

Taxation: The issue of taxation is critical, with municipalities seeking to ensure that short-term rental operators pay their fair share of taxes. This includes transient occupancy taxes, which are typically levied on traditional hotels and lodging establishments.

Legal and Zoning Issues: There are legal challenges related to zoning laws and property rights. Some property owners argue that restrictions on short-term rentals infringe on their rights, while municipalities contend that they have the authority to regulate land use to protect community interests.

Health and Safety: Ensuring that short-term rentals meet health and safety standards is another concern. This includes issues like fire safety, building codes, and ensuring that guests are protected.

See References section for more information.

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